{"id":4639,"date":"2008-07-29T16:01:53","date_gmt":"2008-07-29T16:01:53","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2008\/07\/sec_issues_compliancealert_let"},"modified":"2008-07-29T16:01:53","modified_gmt":"2008-07-29T16:01:53","slug":"sec-issues-compliancealert-let","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-issues-compliancealert-let\/","title":{"rendered":"SEC Issues \u201cComplianceAlert Letter\u201d Citing Common Weaknesses and Deficiencies of Registered Firms"},"content":{"rendered":"

\t\t\t\tThe Securities and Exchange Commission has issued a staff letter reporting on the “common weaknesses and deficiencies” shared by SEC-registered companies. The findings were based on examinations given to the firms.<\/p>\n

The “ComplianceAlert Letter” is intended to provide key information, encourage compliance officer to address these issues, and foster “robust compliance” within the industry. The letter, the second one sent in as many years by the SEC, is sectioned into distinct areas focusing on broker-dealers, investment advisers\/mutual funds, and transfer agents.<\/p>\n

Among the deficiencies:<\/em><\/p>\n

\u2022\tFailure to comply with procedures and polices<\/a>
\n\u2022\tQuestionable personal trading practices<\/a>
\n\u2022\tProxy service provider issues \u2022\tProxy voting \u2022\tValuation and liquidity issues \u2022\t“Free lunch” seminars
\nExaminers recently finished a review of a number of big broker-dealers to evaluate their “valuation and collateral management practices” and how these impact subprime mortgage-related products. The SEC examiners noted that it had become increasingly difficult for firms to confirm inventory valuations because of insufficient market liquidity. <\/p>\n

Issues of concern included: <\/em><\/p>\n

\u2022\tInadequate staff and supervisory procedures \u2022\tInsufficient documentation standards
\n\u2022\tPricing inconsistencies
\n\u2022\tLack of margin call processes
\nThe agency also expressed concern that transfer agents may be engaged in a conflict of interest because they receive a partial search fee related to the search process for “lost” security holders and using third-party search companies. <\/p>\n

Related Web Resources:<\/strong><\/p>\n

Read the SEC ComplianceAlert<\/a>, July 2008
\nSEC Compliance Alert Warns Investment Advisers on Ethics<\/a>, Hedgeco.net Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Securities and Exchange Commission has issued a staff letter reporting on the “common weaknesses and deficiencies” shared by SEC-registered companies. The findings were based on examinations given to the firms. The “ComplianceAlert Letter” is intended to provide key information, encourage compliance officer to address these issues, and foster “robust compliance” within the industry. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760],"tags":[],"class_list":["post-4639","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement"],"yoast_head":"\nSEC Issues \u201cComplianceAlert Letter\u201d Citing Common Weaknesses and Deficiencies of Registered Firms — Investor Lawyers Blog — July 29, 2008<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission has issued a staff letter reporting on the "common weaknesses and deficiencies" shared by SEC-registered companies. — July 29, 2008\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-issues-compliancealert-let\/\" \/>\n<meta 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